cancel
Showing results for 
Search instead for 
Did you mean: 
dawz007
Level 3

Feeling overwhelmed

Hello,

I am new to QBO and new to books. I am starting to feel really overwhelmed… the question I need clarity on at this moment is this: do I have to create an invoice (for partial payments) or sales receipt for every transaction or can I just categorize in the banking screen? It’s getting too hard to keep up with all the transactions and I’m wondering if I’m overthinking everything. Thanks in advance.

Solved
Best answer April 12, 2022

Best Answers
Giovann_G
Moderator

Feeling overwhelmed

Welcome back, dawz007.

 

I'll share additional information about recording transactions in QuickBooks Online.

 

In QuickBooks Online, there are two ways to record sales transactions. If the customer agrees to pay you later, you can create an invoice. If they pay you right away, you can issue a sales receipt.

 

If you haven't recorded any sales transactions, you can add and categorize your downloaded banking transaction. Otherwise, you can match it to the existing transactions.

 

On the other hand, you can create a journal entry to record the business expense paid from the personal fund.

 

Here's how:

 

  1. Select + New.
  2. Click Journal Entry.
  3. On the first line, select the expense account for the purchase.
  4. Enter the purchase amount in the Debits column.
  5. On the second line, choose either the Partner's equity or the Owner's equity.
  6. Enter the same purchase amount in the Credits column.
  7. Hit Save and close.

 

These are the steps to reimburse the money:

 

  1. Click + New.
  2. Select Expense or Check.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the Category column, select Partner's equity or Owner's equity.
  5. Enter the amount of the reimbursement.
  6. Hit Save and close.

 

For your reference, you can review this article for more details: Pay for business expenses with personal funds.

 

I'm also adding this resource about manually recording sales transactions in QuickBooks Online for future reference: Record invoice payments in QuickBooks Online.

 

Don't hesitate to reply if you have further questions about recording transactions. We're always here to help you.

View solution in original post

3 Comments 3
AlexV
QuickBooks Team

Feeling overwhelmed

Hi dawz007!


Good to see you here again. Let me share some details about tracking your transactions in QuickBooks Online.


Banking is a great feature to ensure that all your bank transactions are imported, tracked, and categorized correctly in QuickBooks Online. However, you'll want to create an invoice or sales receipt if you need a more detailed transaction. A perfect example is if you are tracking inventory.


Also, please note that you can match the manually entered transaction in QuickBooks Online to the downloaded transaction from your Banking. This will prevent from having duplicate transactions and avoid discrepancies.


I suggest you check these links for detailed steps on what to do with the downloaded transactions and how to reconcile your accounts:


You can always reach out to us if you have any other questions about QuickBooks Online. Need help in running reports? Let me know and I'll gladly lend a hand.

dawz007
Level 3

Feeling overwhelmed

I appreciate you. Thank you so much!

The company I am doing the books for does not track any inventory, it is a basketball club and so it’s all based on services offered, any jerseys that are sold are paid for before ordering. I can just categorize in banking?

The owner also pays for gym space and gear orders with his personal account and then transfers money to himself. Would this be recorded as an expense to the corresponding account and then owner’s equity as a - for the same amount, or should I record this differently?

Giovann_G
Moderator

Feeling overwhelmed

Welcome back, dawz007.

 

I'll share additional information about recording transactions in QuickBooks Online.

 

In QuickBooks Online, there are two ways to record sales transactions. If the customer agrees to pay you later, you can create an invoice. If they pay you right away, you can issue a sales receipt.

 

If you haven't recorded any sales transactions, you can add and categorize your downloaded banking transaction. Otherwise, you can match it to the existing transactions.

 

On the other hand, you can create a journal entry to record the business expense paid from the personal fund.

 

Here's how:

 

  1. Select + New.
  2. Click Journal Entry.
  3. On the first line, select the expense account for the purchase.
  4. Enter the purchase amount in the Debits column.
  5. On the second line, choose either the Partner's equity or the Owner's equity.
  6. Enter the same purchase amount in the Credits column.
  7. Hit Save and close.

 

These are the steps to reimburse the money:

 

  1. Click + New.
  2. Select Expense or Check.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the Category column, select Partner's equity or Owner's equity.
  5. Enter the amount of the reimbursement.
  6. Hit Save and close.

 

For your reference, you can review this article for more details: Pay for business expenses with personal funds.

 

I'm also adding this resource about manually recording sales transactions in QuickBooks Online for future reference: Record invoice payments in QuickBooks Online.

 

Don't hesitate to reply if you have further questions about recording transactions. We're always here to help you.

Sign in for expert help
Ask questions, post replies & join our community of QuickBooks users.

Need to get in touch?

Contact us